us, uk, eu central banks hassan ahmed group 4 – m1 gei
TRANSCRIPT
US, UK, EU Central BanksHassan AhmedGroup 4 – M1 GEI
INDEX
I- US CENTRAL BANK
II- UK CENTRAL BANK
III- EU CENTRAL BANK
CONCLUSION
INTRODUCTION
Generally, a central bank is a public institution that manages a state’s currency, money supply and interest rates. Central banks also usually oversee the commercial banking system of their respective countries. In contrast to a commercial bank,
A central bank is the only organisation able of increasing the nation's monetary base, and usually also prints the national currency
There are a lot of Central banks and in this presentation, we’ll focus on three of them : Fed, Bank of England and ECB.
First of all, I’ll talk about the creation of these central banks, after that I’ll present their role and objectives and I’ll conclude by saying some words about their interactions and interventions
US CENTRAL BANK (The Fed)
The Federal Reserve System was created by Congress as the U.S. central bank.
President Woodrow Wilson signed the Federal Reserve Act on December 23, 1913.
Why creating the Fed : the U.S. economy had frequent episodes of panic, bank failures, and credit problems.
US CENTRAL BANK
STRUCTURE
• Board of Governors
• Federal Reserve Banks
• Federal Open Market Committee
• Financial Regulatory Reform
US CENTRAL BANK
US CENTRAL BANK
Monetary Policy
• Setting Monetary Policy: The Federal Funds Rate
• Implementing Monetary Policy: The Fed's Policy tools :
– Open Market Operations
– The Discount Rate
– Reserve Requirements
– Interest on Reserves
– Temporary, Nontraditional Tools
US CENTRAL BANK
• Play the ChairMan of the FED
• http://www.frbsf.org/education/activities/chairman/
UK CENTRAL BANK
• The Bank of England is the central bank of the United Kingdom.
• Also called 'Old Lady' of Threadneedle Street.
• the Bank was founded in 1694, nationalised on 1 March 1946, and gained independence in 1997.
• Sir Mervyn King - Governor
UK CENTRAL BANK
The Bank of England, formally the Governor and Company of the Bank of England is the central bank of the United Kingdom.
Established in 1694, by a group of merchants and parliamentarians led by sir William Paterson.
it is the second oldest central bank in the world,
It was established to act as the English Government's bank.
UK CENTRAL BANK
EU CENTRAL BANK
The European Central Bank was created on 1 June 1998.
Seven months to prepare :
Replacing the currencies of a group of states with a single currenc
Devising a monetary policy for the euro area.
EU CENTRAL BANK
The ECB is the central banking system of the euro area Conducting monetary policy for the countries in the currency union. I
ts primary objective is price stability over the medium term, because stable prices form the basis for sustainable economic growth and prosperity in Europe.
1 June 1998 also saw the creation of the "European System of Central Banks" : the ECB and the central banks of all the EU's Member States.
EU CENTRAL BANK (ECB)
ECB's TASKS :--Defining Eurosystem policies
--Deciding, coordinating and monitoring
--themonetary policy operations
--Adopting legal acts
--Authorising the issuance of banknotes
– Interventions on the foreign exchange markets:
– The operation of payment systems and the oversight of payment and other financial market infrastructures
DIFFERENCES TO BE CONSIDERED
ECB FED BoE
The problems to be addressed :
a sovereign debt banking crisis
a subprime banking crisis
a subprime banking crisis
monetary transmission mechanisms:
through banks. financial markets financial markets
number of participants:
seventeen Treasuries and sovereign debts
a single Treasury and a single sovereign debt
a single Treasury and a single sovereign debt
The lender of last resort function:
more limited
Normly limited Normaly
Transparence : less More More
interest rates: Stiffer Flexible Flexible
CONCLUSION
Central Banks have a heavy role in our modern economy
Controlling currency, inflation unemployment
Question is :
What would be the new tools that could be used by CB to prevent future crisises ?
References
http://www.bankofengland.co.uk/about/Pages/default.aspx
http://www.frbsf.org/what-is-the-fed/
http://www.ecb.int/ecb/orga/escb/html/index.fr.html